Hold onto your hats, gas guzzlers! The world’s thirst for gasoline seems to be slowing. A recent Reuters report shows a significant drop in projected gasoline demand growth for 2024, especially in the world’s two biggest auto markets: China and the United States. Why the slowdown? The rise of electric vehicles and e-mobility.

Analysts predict global gasoline demand growth will nearly halve compared to last year. This comes after a post-pandemic consumption boom in 2023. Consultancy Wood Mackenzie forecasts a meager 340,000 barrel per day increase in 2024, reaching a total of 26.5 million. That contrasts sharply with the impressive 700,000 increase seen in 2023.

Chevy Blazer EV

The booming electric vehicle market, especially in China and the US, drives the slowdown. China, once the undisputed champion of gasoline consumption, is shifting dramatically. The International Energy Agency predicts China will account for over half of all global EV sales in 2024. This means China’s gasoline demand will increase by a mere 10,000 barrels per day this year, a stark change from previous growth patterns.

Clearing the Air At Home

The US market mirrors this trend. Analysts cite a surge in electric vehicle adoption as a key reason for the slowdown. It has significant implications for the oil and gas industry. As consumers choose electric alternatives, gasoline demand will likely continue to decline.

The environmental benefits of this shift are clear. Less reliance on gasoline means lower emissions, cleaner air, and a healthier planet. While the long-term impact on the oil and gas industry remains to be seen, one thing is certain: the electric revolution is underway, with effects rippling through the transportation sector and beyond.

BYD Seal

Electrified Mag’s Take

Despite recent talk about an EV sales slowdown, these consumption numbers highlight why electric vehicles are inevitable, even if it progresses more slowly than originally predicted. The transition will take decades, shaped by market preferences and technological advances. Incentives and political maneuvering will help, but ultimately the market will decide.

One major hurdle for many is the perceived lack of charging infrastructure. While this may be true for long-distance travel, 98 percent of car trips are local. In-home charging is widely available (unless you live in multi-unit housing). In this case, we must expand charging access to apartment complexes and multi-family dwellings.

New Wave

The next wave of adoption will likely come from fleet sales. For example, plumbers, utility companies, and government vehicles primarily operate locally. Setting up charging at the company base solves logistical problems: no more off-site fueling, oil changes, or smog checks. Combine that with an average 250-mile range and less maintenance, and the switch to electric becomes even more attractive.